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Wrongful Termination
Understanding Your Rights




Wrongful termination is a term that gets thrown around quite a bit when somebody is fired, but the true meaning behind the term is often misunderstood.

Before you understand what rights you have as both an employer and an employee, it is important that you understand the legal implications of wrongful dismissal.

What is Wrongful Employment Termination?
  • It is a term that describes the wrongful discrimination against or termination of an employee for illegal reasons, or reasons that violate a contract singed by both employer and employee.
  • For the most part, employees are hired at will, which means that either party can quit the employment contract at any time.  A contract, though, can change these circumstances.
  • Illegal reasons for firing an employee include all reasons put forth in the Civil Rights Act, including firing based on: race, skin color, religion, gender, or national origin.
  • Since then, congress has expanded the wrongful employment termination umbrella to include firing based on age, disability, marital status, political affiliation, and sexual orientation.
  • Furthermore, federal law prohibits companies from firing employees or discriminating against them based on whistle blowing.
    • This is to encourage individuals to step forth with incriminating evidence against larger corporations without fearing repercussions for their actions.
  • Also, it is illegal to retaliate against an employee for complaining about working conditions to the Department of Labor. 

Another clause protecting employees against wrongful employment termination is known as the “good faith” clause.

This is recognized by certain states, and prohibits employers from treating employees unfairly just to improve their bottom line.

An example would be if an employer fired an employee right before they were able to retire and collect benefits.

The employer could not fire an employee simply to avoid paying out retirement.

An employer also cannot create a fast pretense for firing an employee.

For example, they cannot claim that an employee is continually late when he or she is not.

This is known as defamation of character, and is grounds for a wrongful termination lawsuit.

What is Not Wrongful Termination?
  • Firing an employee based on performance is not considered wrongful employment termination.
  • If an employee fails to the universal expected standard put forth by the employer, then firing this employee is perfectly within the company’s rights.
  • Usually, it is a good idea for the company to put the expected terms of employment into writing and have the employee sign off on them.
    • For example, this contract might state that if an employee misses work without notifying a supervisor, this act counts as grounds for termination.
  • Also, firing an employee based on economics is not wrongful employment termination.
    • If a company decides to cut jobs and shrink its workforce, it is perfectly within its rights to do this – as long as it does not discriminate when choosing who to terminate.
  • Also, hiring an employee for seasonal work and then firing them at the end of the season is not wrongful termination.
If you do feel like you have been a victim of wrongful termination, then legal action may be your best bet.  Enlist the help of an attorney to fully understand the avenues of action available to you.


For further information on employee rights, such as the wrongful termination section here, please be sure to check out the following areas:
Similar to the employee rights, employers also have responsibilities and rights.  To learn more about this, check out the employer liability insurance section.

And don't forget to check out the various employment background screening sections, especially if you are interested in federal government jobs.



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